Shareholders of a diversified group PT Barito Pacific Tbk (BRPT) approved the acquisition of 66.7% shares of Star Energy Group Holdings Pte Ltd for US$755 million. This acquisition is expected to complete in June this year. BRPT will issue 5.6 billion new shares and existing shareholders will face 26.72% dilution of shares. Along with BRPT will issue 1.4 billion warrants.
The acquisition of Star Energy demonstrates the commitment and seriousness of the company in developing its business in the energy sector. BRPT has established a new subsidiary, PT Indo Raya Energy, which is engaged in coal-based power generation sector. A joint venture between its subsidiary’s PT Barito Wahana Lestari with a subsidiary of PT Indonesia Power will build Java 9 and 10 power plant. Two of the coal power plant is expected to produce electricity for 2×1.000 megawatts.